FILE PHOTO: Saudi Arabia’s Minister of Energy Prince Abdulaziz bin Salman Al-Saud and Russia’s Energy Minister Alexander Novak are seen at the beginning of an OPEC and NON-OPEC meeting in Vienna, Austria December 6, 2019. REUTERS/Leonhard Foeger
BAKU/DUBAI (Reuters) – Russian Energy Minister Alexander Novak and Saudi Energy Minister Prince Abdulaziz bin Salman will chair an OPEC and non-OPEC online meeting later on Sunday, the Azerbaijan energy ministry said.
The Organization of Petroleum Exporting Countries (OPEC), Russia and other allies, a group known as OPEC+, outlined plans on Thursday to cut output by more than a fifth in an effort to prop up prices hammered by the coronavirus crisis.
But Mexico balked at the production cuts it was asked to make, delaying signing a final deal. Azerbaijan, the third largest ex-Soviet oil producer after Russia and Kazakhstan, would take part in that agreement as a non-OPEC member.
“The ministerial meeting between OPEC and non-OPEC members is a follow-up after the April 9 meeting,” the Azeri Energy Ministry said on Sunday, adding that its energy minister planned to take part in an online conference set to start at 1600 GMT.
Six OPEC+ sources told Reuters earlier on Sunday that OPEC and its allies would hold a virtual meeting on Sunday evening in a bid to end the standoff that has prevented the finalisation of the global oil supply cut pact.
On Thursday, OPEC+ largely agreed to curb crude production by 10 million barrels per day (bpd) or 10% of global supplies, but said they wanted other producers including the United States and Canada to cut a further 5%.
But efforts to conclude the deal, essential to wipe excess barrels from a market hit by weak demand as millions of people are lockdown in their homes due to the coronavirus outbreak, hit the buffers when Mexico said it would only cut output by a quarter of the amount demanded by OPEC+.
The Kazakh energy minister also plans to take part in the online meeting on Sunday, a Kazakh energy source said.
Reporting by Reuters OPEC Team, Nailia Bagirova in BAKU, Katya Golubkova in MOSCOW and Tamara Vaal in NUR-SULTAN; Writing by Andrey Ostroukh and Katya Golubkova; Editing by Jason Neely and Alsion Williams